This week sees the first matchdays of the group stage of the Champions League. Many feel that the imbalance evident in some of the games means that the competition doesn’t really start till after Christmas when the knock out games are played among the last 16 (the top two clubs in each of the eight groups). When you see results such as Barcelona 5, Royal Antwerp 0 it’s rather difficult to argue with that, and even more so when if you go through each group to identify which teams are most likely to move on to the last 16. It has become “a little tired, predictable and increasingly lacking in excitement” as Michael Cox wrote in The Athletic (28/09/23)
Predictable outcomes – that’s the way the money goes ….
Why is there this degree of predictability? Indeed, what is predictable? From a previous post by the Swiss Ramble we know that there are 7 clubs which have qualified for the Champions League (18/09/23 “Which is the best football club in Europe?), every year for the last 10 years. They are Atletico Madrid, Barcelona, Bayern Munich, Juventus, Manchester City, PSG and Real Madrid. Two Portuguese clubs – Benfica and Porto – have qualified 9 out 10 times, as have Dortmund.
One might ask what about the Premiership? The record for English clubs over the last 10 years – as well as Manchester City’s 10/10 – is Chelsea 8, Liverpool 7, Manchester United 6, Tottenham 5 and Arsenal 4. To a considerable degree this reflects the extreme competition in England to make the top 4. For instance, Arsenal used to qualify on a fairly regular basis, but not so much recently. Tottenham have tended to blow hot and cold, lacking consistency.
Comparative predictability
However, if we follow the argument that football is all about money, we might ask why they have not been more successful. For instance,
the so-called Big Six English clubs have received the lion’s share of UEFA TV money in the last 10 years, amounting to €3.3 bln or 93% of the English distribution. Manchester City earned no less than 826 million Euros, followed by Chelsea (647 million) and Liverpool (631 million), Manchester United (483million),Tottenham (398 million) and Arsenal (333 million). Even with a single appearance in the Champions League, Leicester City earned 123 million Euros. Winning the Europa Conference earned West Ham 53 million euros. Given those buckets of cash being paid by uefa to the leading English clubs, is their level of dominance too much of a surprise?
For comparison only Real Madrid surpassed Manchester City’s earnings, while Barcelona were 6th and Atletico Madrid 9th. In Germany, earnings were focused on two clubs – Bayern Munich and Dortmund – who earned 53% of German earnings between them. In Italy, Juventus (810 million) earned more than twice as much as the next team, Napoli (401 million). In France, PSG earned 43% of all French earnings from Europe (817 million), followed by Lyon (291million), Monaco (258 million) Marseilles (192 million) and Lille (126 million). In Portugal, Benfica and Porto earned 75% of European TV money paid there.
In short, UEFA preside over a prize system which strongly favours success, based on
Prize Money 30% of the total pot
Participation 25%
UEFA coefficient 30%
TV Pool 15%
So what’s wrong with predictability (or rewarding success)
It might well be asked “what’s wrong with that?”. What’s wrong, is that while bearing in mind that winners merit reward, if this goes too far then it puts in place a system where success breeds success. If very large sums of money go to the winners, who is most likely to be successful the following year. Moreover, there is an overhang from the past, as previous success improves a team’s coefficient, so increasing payments. As the Swiss Ramble points out, when Manchester City played Inter Milan in the Champions League final, a consequence of this system was th
In this context remember that 7 clubs have qualified for the Champions League every year for the last 10 years and 3 in 9 years of the last 10. How much does this trend reflect the money paid to them in the previous year? How far is UEFA responsible for the development of a small number of super clubs through the Champions League?
Domestic funds
But of course, football clubs do not live by Europe alone. There domestic tv deals, but once again the playing field is not always level. There is one domestic TV statistic that stsnds out from the rest – that if we rank clubs in the EPL by their domestic TV earnings, there are only two clubs elsewhere in Europe who would appear in that ranking – Real Madrid and Barcelona, and they are toward the bottom of the middle third of that table. With 147 and 146 million domestic tv earnings in 2022/23 they earn as much as Wolves and Brighton, but much less than Manchester City (181 million) and Liverpool (179 million). For more perspective, the team finishing bottom of the Premier League gets over £100m, which is more than every single club in Germany, Italy, France or Portugal – and all but three in Spain.
Thus, the effect of both payment systems is the same – reward success and increase inequality.
What this means for Newcastle (and others) bonny lad
A subsequent Swiss Ramble post (“Newcastle United hurt by UEFA’s revenue distribution” 20/09/23) concludes “, Newcastle United will benefit financially from qualifying for the Champions League, which will help the club meet its FFP targets among other things. That’s good news, but the prize will not be as much as it might have been, given the way that the UEFA coefficient effectively punishes “newbies”.” Clearly, from the above, so it does. But how much is this unexected, or even no more than “well this is how the system works”?
I sometimes think of UEFA as parent birds flying back to the nest with food for chicks (the biggest clubs) but it’s never enough. Every time they come back they are faced with however many open mouths demanding “feed me”. It would be naïve to expect these clubs to refuse more money – “no it’s ok, we’ve got enough”. But can there ever enough money to satisfy the demands of the biggest clubs? Or will they keep making demands till UEFA cannot or will not meet these demands. There has already been one, poorly planned and executed proposal for a full time European league in which the biggest clubs would expect to play, hoovering up as much money as they can, leaving only crumbs for UEFA and the lesser clubs (which will include some of the biggest names in Europan football).
The treatment of Newcastle – and the same could be said about any club qualifying for the Champions League for the first time in several years – is instructive and prompts the question – what is the purpose of the current distribution of reward system? Is it to reward success (even overly reward success)? Is it to restrain the top clubs from a European League run by the clubs in the same way as the Premier League is an FA run League? Or is it, so speak, to “repel boarders”? To handicap the arrivistes who want to disrupt the party the established clubs currently enjoy, in the hope of reducing such as Newcastle, in effect, to “one hit wonders”?
What’s the game?
We might also ask whether, or to what extent this is anti-competitive? For instance, leaving prize money to one side, why is it that Newcastle earn only 30 million euros from participating in Champions League, UEFA coefficient and TV pool, while Manchester #city will earn 66 million euros. The main reason is the coefficient (4.5 million compared to 33 million) though Manchester City’s TV pool earnings are forecast to be twice as large as Newcastle’s. Indeed, Newcastle will take less than any of the four English clubs .
As Swiss Ramble concludes, “The Geordies have basically been hammered for the crime of not playing in Europe for ages, so it does not really matter how good (or bad) the current team is, which means that Ashley’s legacy still lingers on”. But another way of looking at this is to recognise that the distribution will advantage the more established clubs and disadvantage the newcomer. Just an accident?
That said, we should recognise that when the new Champions League begins next season are moving toward a more equal system. Prize money and participation will increase from 55% of the total pot this season to 65%, most of this being the increase in prize money from 30% to 37.5%. This will be at the expense of the UEFA coefficient and tv pool, which will decline from 45% to 35%. So some more emphasis will be on success on being in the competition and winning, rather than the size of your national tv audience and success up to 10 years ago. But the transfer is only 10% of the pot, so a long way to go before what matters is winning matches and qualifying in the first place. What a team achieved up to 10 years will continue to overhang European competition, and while a move in the right direction it will not fundamentally challenge the dominance of the biggest clubs, who would, in any case, oppose any reforms that might do so.
Is this the game? Really?
We said at the beginning, the group stage of the Champions League is “a little tired, predictable and increasingly lacking in excitement”. Reforming to a Swiss system’, where all 36 competing sides will be in one division and sorted according to their results in —matches against eight separate opponents (four at home, four away) – ie one that will take time for fans to understand – seems unlikely to introduce too much change for the best teams will always be able to do it on the pitch and to win the competition and hoover up all the dosh.
Indeed with the coefficient and tv pool still in place (if somewhat less valuable) we can still end up with unusual outcomes that while Manchester City won the Champions League and trousered more money than anyone else, Inter – who having lost in the final, were arguably second – got less money out of this than such as Real Madrid (who lost in the semi-final) and Bayern Munich (losers in the last 8). Winning isn’t always less important than bums on seats and previous outcomes, but it can be. Can this be right?